Pound holds position despite no economic data releases
15 February, 2018
Yesterday the Pound held its position despite having no domestic economic data releases to note, particularly against the Euro and US Dollar and closed the trading day just under half a cent better than where it had opened. Although there was a slight drop in the rates during the mornings trading, the Pound proved resilient and this was likely down to the inflation result from the US, which came inconsistent with the previous periods reading of 2.1% and above the market’s prediction of 1.9%. This was a welcomed figure for the US and could well influence the Federal Reserve’s future decisions regarding raising interests rates sooner than initially expected this year. As the three majors tend to act on a seesaw when the Dollar is up the Euro tends to be down while the Pound sits between the two, so this is typical to what happened with the rates yesterday.
Brexit news may have also been an added factor to the Pounds resilience. Boris Johnson spoke yesterday (one of a few speeches due to be made by Cabinet members regarding the Brexit transition) Comments made by Boris Johnson appeared to be Sterling positive, at least this time anyway. With more speeches due over the next few weeks, Brexit is still going to be the driving force behind the current market and one for our readers and those with an upcoming requirement to be mindful of.
This morning we have already had a handful of data release out for various countries in the EU. Later this morning we have speeches from the European central bankers Praet and Lautenschlager and this afternoon the US release their figures for initial and continuing jobless claims, industrial production and housing market index. but again another quiet day for the UK with no data release due.
As ever, if you have a requirement to buy or sell any currency in the coming weeks or months then it’s certainly worth getting in touch with us here at Currency Index. We can closely monitor the exchange rates on your behalf and keep you in the loop of any positive or negative movements caused by the ongoing Brexit negotiations to help you manage any potential risk and maximise your currency transfers.
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